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August 15, 2020
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Why is payroll showing this error message? "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate..."?

  • August 15, 2020
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Best answer by LarryHat17

I solved my issue. 

QBO payroll automatically setup my Oregon state withholdings account, but created it as a "Sales Tax Payable" account instead of a "Payroll Tax Payable" account.  I fixed it by creating a  new "Payroll Tax Payable" account and updating the Tax liabilities accounts under Payroll Settings.

1 reply

LarryHat17AuthorAnswer
August 15, 2020

I solved my issue. 

QBO payroll automatically setup my Oregon state withholdings account, but created it as a "Sales Tax Payable" account instead of a "Payroll Tax Payable" account.  I fixed it by creating a  new "Payroll Tax Payable" account and updating the Tax liabilities accounts under Payroll Settings.